Best Forex Brokers in Malaysia

The post Best Forex Brokers in Malaysia by Anna Yen appeared first on Benzinga. Visit Benzinga to get more great content like this.

Forex trading can be a profitable endeavor, but it’s important to choose a reputable and well-regulated broker that can support your trading. Each broker has its own strengths and weaknesses, so traders need to do their research before settling on one. With careful consideration, Malaysian forex traders can select a top-rated forex broker that can support their trading experience.

This article will compare some of the best options available to help traders make an informed decision. Considering factors such as regulatory compliance, trading platform, customer service, and pricing, Benzinga reviews the top five brokers offering forex trading to clients in Malaysia. 

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Quick look: Best Malaysia Forex Brokers 

• Best for MetaTrader 4 and 5 Trading: Eightcap
• Best for Copy Trading: OctaFX
• Best for Beginners: FOREX.COM
• Best for Experienced Traders: Moneta Markets
• Best for Social Trading: eToro

5 Best Malaysia Forex Brokers

If you reside in Malaysia and want to sink your teeth into forex trading, here are the best forex traders worth considering

1. Eightcap

Best for: MetaTrader 4 and 5 Trading

Eightcap is an Australian-based forex broker that also offers a vast range of other securities, such as commodities, shares and indices. It supports the MetaTrader 4 and MetaTrader 5 trading platforms and is rated the best global forex MT4 broker in 2020 by Global Forex Awards. Eightcap is regulated in Malaysia and accepts Malaysian clients.

Pros: 

• Clean, intuitive user interface
• Low forex spread
• Optimized support for MetaTrader 4 and 5 platforms 

Cons: 

•  Limited educational resources
•  Limited available forex pairs

Read Benzinga’s Full Eightcap Review

2. OctaFX

Best for: Copy trading

OctaFX is an online forex broker offering trading services in currencies, indices, commodities and cryptocurrencies. It’s best known globally for its award-winning copy trading feature and offering of Islamic account products with no interest.

Pros:  

• Proprietary social copy trading feature  
• Competitive spread 
• Negative balance protection

Cons:  

•  Offers only 35 currency pairs

3. FOREX.com

Best for: Beginners

FOREX.com is a multi-trading platform broker offering MetaTrader 4 and 5, NinjaTrader and its proprietary Advanced Trading platform. The broker supports Islamic account options to serve the sizeable Muslim population in Malaysia. Its educational material is extensive and will benefit both beginner and experienced traders.

Pros:  

• User-friendly trading platform 
• Massive selection of tradeable currencies
• First-class educational resources

Cons: 

• Poor customer support 

Read Benzinga’s Full FOREX.COM Review

4. Moneta Markets

Best for: Experienced traders

Moneta Markets is an online broker offering trading services in forex, contracts for difference (CFDs), commodities, indices and cryptocurrencies. The Cyprus-based broker offers the popular MetaTrader 4 platform as well as its powerful proprietary ProTrader platform. Experienced and active traders will find the broker’s advanced trading tools and comprehensive educational materials especially attractive.

Pros: 

• Multiple trading platform options 
• Excellent analytical and trading tool
• Comprehensive educational resources   
• Low forex spread

Cons:

• No investor protection 

Read Benzinga’s Full Moneta Markets Review 

5. eToro

Best for: Beginners

eToro is a popular trading platform known for pioneering social copy trading. The innovative copy trading feature allows users to imitate the trades of accomplished traders. eToro social features further include a vibrant online community of users where investors can connect and discuss trading strategies. eToro supports MetaTrader 4, which combines powerful trading tools with an intuitive interface anyone can quickly get used to 

Pros: 

• CopyTrader to copy more accomplished traders
• Easy-to-use, intuitive interface across web and mobile platforms  
• Practice demo account for trade simulation 

Cons: 

• Basic trading tools
• Limited customer support
• U.S. dollar-denominated, which means additional conversion fees

Read Benzinga’s Full eToro Review 

Understanding Trading Forex in Malaysia

Forex trading in Malaysia allows traders to buy and sell foreign currencies in the Malaysian currency, the ringgit. Traders must first open a trading account with a broker to begin trading in the forex market. Once the account is opened, traders can buy and sell currencies, taking advantage of the differences in exchange rates. 

Forex brokers are establishing their presence in Malaysia as local demand has been increasing. The Malaysian ringgit, the local currency, was formerly pegged to the U.S. dollar. But in 2005, the Central Bank of Malaysia ended the peg. The currency is now a managed floating currency monitored against a currency basket to make sure the exchange rate remains close to fair value to help maintain the stability of the ringgit exchange rate.

Malaysian residents can confidently trade forex knowing that brokers there are regulated by the Securities Commission Malaysia (SCM). Islam is Malaysia’s official religion, and forex brokers operating in the county offer products that comply with Sharia law. Regular forex account products charge or pay interest on funds deposited in the account, contrary to Islam’s tenets. 

Generally, trading practices that contain elements of interest or high-risk speculation are prohibited in Islam. As a result, brokers operating in Malaysia design trading account products that exclude loans, margin trading and short sales.

Before You Open a Forex Account

Since not all online brokers are equal, the most important thing to be confident about before opening a forex account is that the broker is secure and offers the services you require. The bullet points below describe the more common considerations you’ll want to review before you select a broker as a trading partner.

Regulation

The primary consideration when choosing a broker should be the security of your funds deposited as margin. Select a well-regulated broker with at least one reputable regulatory body overseeing its operations and that segregates client accounts from its own.

Most foreign brokers accepting clients from Malaysia will be overseen by one or more good regulatory agencies, such as the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC) in the United States or the U.K.’s Financial Conduct Authority (FCA).

Broker Type

Online brokers will typically act either as market makers or as electronic communications network (ECN) brokers. Market makers take the other side of your trades, while ECN brokers pass on the best price of a selection of market makers who use its electronic communications network.

ECN brokers typically show narrower variable spreads but may charge a per-trade commission, while market makers often have wider fixed spreads but no commission.

Dealing Spreads and Commissions

The difference between the bid price and the offer price in a broker’s quotation is known as the dealing or bid/offer spread.  Since spreads and commissions add a cost to trading, active traders will want to keep them down as low as possible, while less active traders typically seem less sensitive to such considerations.

Trading Platform

Ideally, you want to find a broker that offers trading software with a customizable interface and that has the analysis features you require, as well as runs on the desktop, mobile or web platform you prefer.

Virtually all of the best online forex brokers will support using the popular MetaTrader 4 and 5 trading platforms developed by MetaQuotes that offer a complete technical analysis functionality with numerous valuable trading tools, including a wide range of third-party expert advisors (EAs) and custom indicator software that you can use or purchase.  Some brokers also offer access via cTrader, NinjaTrader, their own proprietary platforms and social copy trading platforms like ZuluTrade.

Customer Service

Most traders, especially those with less experience, know the importance of being able to communicate promptly with their broker’s customer support staff in case errors or issues arise. Traders new to the broker can also appreciate the material on how to use their trading platforms.

Research, Analysis and Educational Materials

These written and visual aids can be a major plus for traders with less experience. Even more advanced traders may appreciate having access to a high-quality news feed and market analysis performed by professionals.

Trade Forex in Malaysia

Forex trading in Malaysia is slightly different from other countries because of the country’s unique regulations and restrictions. The Malaysian population is primarily Muslim, and the country’s official religion is Islam. Therefore, forex brokers operating in Malaysia have adapted their products to comply with Islamic sharia laws, which strictly forbid interest on deposits and risky speculations.

The brokers listed here offer the best brokerage services in Malaysia with products and features considered Halal (permissible). However, forex trading can be risky, and you should do thorough research before selecting the right forex broker in Malaysia.

Frequently Asked Questions

The post Best Forex Brokers in Malaysia by Anna Yen appeared first on Benzinga. Visit Benzinga to get more great content like this.